Derivative Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Liability [Abstract]

Assumptions used derivative liabilities

The assumptions considered in the valuation model for the December 31, 2014 Notes at March 31, 2016 and December 31, 2015 were:

	March 31 2016			December 31, 2015
Trading price of common stock on measurement date	$	0.43		$	0.550
Conversion price	$	0.30		$	0.300
Risk free interest rate (1)		0.49	%		0.15	%
Conversion notes lives in years	<1 year			<1 year
Expected volatility (2)	255		%	208		%
Expected dividend yield (3)	-			-

The assumptions considered in the valuation model for the Sept 2015 and Dec 2015 notes at March 31, 2016 and December 31, 2015 were:

	March 31,			December 31,
	2016			2015
Trading price of common stock on measurement date	$	0.43		$	0.55
Conversion price	$	0.30		$	0.30
Risk free interest rate (1)		0.39% - 0.49	%		0.57%-0.65	%
Conversion notes lives in years	<1 year			<1 year to 1 year
Expected volatility (2)		258% - 255	%		208% - 224	%
Expected dividend yield (3)		-

(1)   The risk-free interest rate was determined by management using the 6 and 9 months Treasury Bill as of the respective measurement date.

(2)   The volatility factor was estimated by using the historical volatilities of the Company’s trading history.

(3)   Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future.

Summary of derivative liability

A summary of the derivative liability at March 31, 2016 is summarized as follows:

Balance, December 31, 2015	$	2,232,586
Conversion of notes payable		(54,306	)
Change in fair value		(530,695	)
Balance, March 31, 2016		1,647,585